"She has eliminated all of the negative people and influences in her life," a friend of the pop star tells PEOPLE. "She has surrounded herself with only supportive and loving friends and family."

Another source admits the "Timber" singer has been "lying low" but is in a "really good place" as she settles into making Los Angeles her new home following her stint in a Chicago-based rehab center where she sought treatment alongside her mother, Pebe Sebert.

"Kesha is back to practicing self-love and is at peace with herself," adds the friend. "She's found her inner strength and focus again."